WorksheetsA1 Flash Test week 13
Total questions: 25
Worksheet time: 14mins
Which of these conditions in a market or industry would make it harder to set realistic marketing objectives?
Stable long-term market shares
Increasing numbers of new market entrants
Little scope for product innovation
Established, long-term gentle decline in market size
Business Y has a market share of 24% in a market where total sales are £8,000,000 per year. If the market grows by 10% next year but Business Y sales stay the same, what will its new market share be?
18.2%
21.8%
22.6%
25.6%
A business has a single product which it believes has a price elasticity of demand of -1.6. If the business decides to increase the selling price of the product by 5% the likely effect is:
Demand decreases by 8%
Demand increases by 8%
Demand increases by 3%
Demand decreases by 3%
Company A plc has 20 million shares in issue and a share price of 25p per share. If the share price rises by 8%, what will Company A’s market capitalisation be at the new share price?
£5.0 million
£5.4 million
£8.4 million
£8.0 million
What variables does the Boston Matrix analyse?
Market profitability and business size
Market profitability and market growth rate
Market share and profitability
Market share and market growth rate
In a decision tree, the financial value of an outcome (calculated by multiplying the estimated financial effect by its probability) is known as the:
Expected value
Likely result
Probable profit
Net gain
Which pricing strategy sets a low initial price to quickly gain market share?
Price skimming strategy for early adopters
Cost-plus pricing strategy for predictable margins
Penetration pricing strategy for rapid entry
Premium pricing strategy for exclusivity
Which legal form gives owners limited liability protection?
Private limited company status
Partnership joint liability
Unincorporated association form
Sole trader personal liability
A marketing objective might include sales. Sales can be measured in terms of what?
Sales value and sales units
Sales volume and sales performance
Sales value and sales volume
Sales volume and sales growth
Technology, social, economic, political, competition and legal. These are examples of internal or external influences on marketing?
External
Internal
What is the best definition of brand loyalty?
The positive association consumers attach to a particular product or brand.
The promotion of a particular product by means of advertising
The use of market research and advertising to promote and sell products or services
The combination of factors used to influence consumers to purchase a company's products
9. If the price elasticity of demand for a product is -1.5, what happens to total revenue if the price increases?
A) Total revenue increases.
B) Total revenue remains unchanged.
C) Total revenue decreases.
D) Total revenue doubles.
10. Which of the following is a determinant of price elasticity of demand?
A) The number of competitors in the market
B) The level of advertising expenditure.
C) The availability of substitute goods.
D) The total fixed costs of production.
Which of the following goods is likely to have a high income elasticity of demand?
A) Necessities
B) Luxury goods
C) Generic medications
D) Staple foods
7. A luxury car manufacturer observes that when income increases by 20%, the demand for its cars increases by 30%. What is the income elasticity of demand?
A) 0.67
B) 1.5
C) 1.2
D) 0.6
When might a business need to consult with different stakeholder groups before making a decision?
When a business needs to cut costs
When launching a new product
When hiring new employees
When celebrating an anniversary
Which of the following best describes why conflicts may arise between different stakeholders in a business?
Stakeholders always have the same needs and interests
Stakeholders have different needs and interests
Stakeholders never care about the business
Stakeholders only want to reduce profit
Which of the following best describes the approach for stakeholders with high power but low interest?
Keep Satisfied
Keep Informed
Manage Closely
Monitor (Minimum Effort)
The cost of borrowing money or the reward for saving money expressed as a percentage
Economic Climate
Interest Rates
Overdraft
Consumer Spending
Construction and manufacturing activities relate to :
The Primary sector
The Secondary sector
The Tertiary (third) sector
Functional objectives are usually set for :
individuals
the whole company
departments
senior management
Costs that alter directly with output level
fixed costs
variable costs
Revenue =
selling price - quantity sold
selling price + quantity sold
selling price x quantity sold
selling price / quantity sold
Unlimited liability applies to :
an LTD
a PLC
a company
a sole trader
Qualitative market research =
large scale surveys, closed questions
small scale interviews, open questions
